Senior U.S. District Judge John M. Gerrard sentenced Jeffery Sikes, 43, to nine years in prison for wire fraud on Tuesday, August 27. He will begin his sentence after serving 18 years for his role in the arson of Walmarts in Alabama.

According to a press release from the U.S. Attorney’s Office, Sikes designed and implemented several fraudulent schemes in Nebraska County from early 2012 until approximately July 1, 2014. An indictment accuses Sikes of implementing several separate schemes, with Sikes exploiting different victims for each scheme.

According to the law firm, the charges included a scheme to trick real estate developers into believing Sikes had found tenants and demanded a referral fee – when in fact there were no tenants. In another scheme, Sikes convinced others to invest their retirement savings in a supposedly new research and development company that in reality did not exist. Each scheme typically involved complex forged documents designed to give victims a sense of security.

As part of the scheme to which Sikes pleaded guilty, he contacted B&J Partnership, also known as Speedway Properties of Lincoln, as a “consultant” for Vanguard Nebraska, a limited liability company. He contacted Speedway to enter into a lease for commercial space the company owned in Lincoln. Sikes told B&J that Vanguard intended to establish laboratory space in Lincoln for research and development.

Sikes proposed that B&J provide $750,000 for the build-out of the commercial premises owned by B&J. To persuade B&J to enter into the lease and finance the building, he submitted complex forged documents, including falsified IRS financial statements and tax forms, falsified information about purported subcontractors who were supposedly responsible for the construction, and falsified invoices from said subcontractors for work performed or materials related to the cost of construction for the property.

But Vanguard was never a real company.

All documents submitted to B&J and others concerning Vanguard and the subcontractors allegedly involved in the project were forged and fraudulently created by Sikes and others working with Sikes. In the course of this fraud, Sikes ordered the disbursement of funds for fraudulent invoices totaling $507,231.96, causing B&J to suffer loss.

In addition to the damage to B&J, the other schemes mentioned in the indictment resulted in additional victims losing an additional $311,938. In total, Sikes is responsible for defrauding multiple companies, organizations and individuals in the amount of $819,169.96.

Sikes pleaded guilty to one count of wire fraud on April 28, 2017.

On January 5, 2018, Sikes failed to appear for his sentencing and a warrant was issued for his arrest. It was later discovered that Sikes had fled Nebraska to Alabama, where he hid with others and used the alias “Kenneth Allen.”

In February 2022, Sikes was arrested and charged with conspiracy to commit malicious destruction by fire in the District of Alabama, a crime for which he was convicted on May 30, 2023. According to documents in that case, while living as a fugitive in Alabama, Sikes led a conspiracy of seven other co-defendants. As part of the conspiracy, Sikes and the others set fire to four different Walmart stores in Alabama and Mississippi. Each of the fires was set during business hours while customers, employees, and vendors were inside the stores.

Prior to the arson, Sikes and his co-conspirators met and drafted a “Declaration of War and Demands to the People,” which included demands and threats against Walmart if the demands were not met.

Sikes pleaded guilty to conspiracy in the Alabama case. He was sentenced to 18 years in prison, three years probation, and ordered to pay $7,295,533.23 in restitution, to be paid jointly and severally with his co-defendants in that case.

This case was investigated by the Federal Bureau of Investigation.

“Jeffery S. Sikes’ fraudulent schemes have had devastating financial consequences for his victims in Nebraska,” said Eugene Kowel, special agent in charge of the FBI’s Omaha office, in a press release. “His attempt to escape the consequences of his crimes was futile. No matter how long it takes, the FBI is committed to working with our federal, state and local partners to bring criminals to justice.”

After Sikes was convicted in Alabama, he was returned to the District of Nebraska to face trial for the crimes committed in that case. The prison sentence imposed by Gerrard was ordered as a result of the prison sentence imposed on Sikes in the Alabama case.

“The U.S. Attorney’s Office is committed to ensuring justice is served for all crimes committed in the District of Nebraska and that the defendants are held accountable, no matter how many years it takes,” U.S. Attorney for the District of Nebraska Susan T. Lehr said in a press release. “Jeffery Sikes’ serious crimes against numerous Nebraska citizens and businesses have not been forgotten, and today’s verdict is a reflection of the dedication and hard work of everyone involved in this case before and after Sikes’ escape in 2018.”

After his release from prison, Sikes will serve a three-year suspended sentence. There is no parole in the federal system. Sikes was also ordered to pay $819,169.96 in restitution to the victims of his fraud offenses in Nebraska.